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This Appendix, by itself, does not have the force and effect of law and is not meant to bind the public in any way. 

Unless otherwise applicable, this Appendix is intended only to provide information to the public regarding existing 

requirements pursuant to 49 U.S.C. § 22905. 

Equivalent Labor Protections

APPENDIX

This Appendix provides guidance on the protective arrangements equivalent to the protective 

arrangements established under Section 504 of the Railroad Revitalization and Regulatory Reform Act of

1976, with respect to employees affected by actions taken in connection with a Project financed in whole 

or in part with financial assistance subject to 49 U.S.C. § 22905(c)(2)(B). Fluctuations and changes in 

volume or character of employment brought about solely by other causes are not within the scope of this 

Appendix.

1. Definitions. Whenever used in this Appendix, capitalized terms shall have the meanings 

below:

(a) “Average Monthly Compensation” means the total compensation received by a Displaced 

Employee or a Dismissed Employee during the last twelve (12) months in which they were employed 

immediately preceding the date of their displacement or dismissal, divided by twelve (12). The Average 

Monthly Compensation shall be adjusted to reflect subsequent general wage increases.

(b) “Average Monthly Time” means the total number of hours worked by a Displaced 

Employee during the last twelve (12) months in which they were employed immediately preceding the 

date of their displacement, divided by twelve (12).

(c) “Day” means one 24-hour calendar day (including holidays and weekends) for purposes 

of calculating deadlines and other timeframes in this Appendix.

(d) “Displaced Employee” means a Protected Employee who remains employed by a Railroad 

but, as a result of a Project, is placed in a worse position with respect to compensation and rules 

governing working conditions. A Protected Employee’s status as a Displaced Employee begins on the 

date said employee is harmed.
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(e) “Dismissed Employee” means a Protected Employee who: (1) as a result of a Project, is 

deprived of employment with the Railroad because (i) the Railroad eliminates the Protected Employee’s 

position, or (ii) the Railroad eliminates another employee’s position (and that employee’s exercise of 

seniority rights results in the Protected Employee’s inability to secure another position by the exercise 

of the Protected Employee’s seniority rights); and (2) is unable to secure another position by exercise 

of their seniority rights A Protected Employee’s status as a Dismissed Employee begins on the date 

said employee is deprived of employment.

(f) “Project” means any action financed in whole or in part with financial assistance subject 

to 49 U.S.C. § 22905(c)(2)(B).

(g) “Protected Employee” means an employee of a Railroad who is affected by actions taken 

pursuant to a Project, whether the Project is initiated by a Railroad or a Recipient. If a Railroad 

rearranges or adjusts its forces in anticipation of a Project with the purpose or effect of depriving an 

employee of benefits to which they otherwise would have become entitled under this Appendix, then 

that employee is a Protected Employee under this Appendix. An employee’s status as a Protected 

Employee shall continue for the duration of the applicable Protective Period. An employee who solely 

benefitted as a result of a Project shall not be a Protected Employee under this Appendix.

(h) “Protective Period” means that period during which a Displaced Employee or a Dismissed 

Employee is provided the protections described in this Appendix. The Protective Period begins on the 

date an employee of a Railroad is displaced or dismissed and ends after six (6) years. However, the 

Protective Period for any particular employee shall not continue longer than the period of time the 

Railroad employed the employee prior to the date of their displacement or dismissal. For purposes of 

this Appendix, an employee's length of service shall be determined in accordance with the provisions 

of Section 7(b) of the Washington Job Protection Agreement of May 1936, as amended.

(i) “Recipient” means any person or entity receiving financial assistance subject to the 

requirements of 49 U.S.C. § 22905(c), including grantees, subrecipients, contractors, and 

subcontractors.

(j) “Railroad” means (1) a railroad carrier as defined in 49 U.S.C. § 20102(3), or (2) any 

person deemed a rail carrier pursuant to 49 U.S.C. § 22905(b).
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2. Flow Down. 

(a) In accepting financial assistance for a Project, the Recipient is responsible for ensuring the 

compliance with the protections provided in this Appendix. The Recipient shall make the acceptance of 

this Appendix a condition of any new contract (or incorporate its terms into any existing contract by 

amendment) that uses funds subject to the requirements of 49 U.S.C. § 22905(c). These conditions shall 

apply to a Recipient, any Railroad and any contractor of any tier with which the Recipient contracts using 

funds subject to the requirements of 49 U.S.C. § 22905(c). 

(b) The Recipient shall require in an agreement (either in a new agreement or as an amendment to 

an existing agreement) with a Railroad owning the right-of-way to be improved by a Project that the

Railroad notify its employees (or their representatives) of the Project being funded with financial 

assistance subject to 49 U.S.C. § 22905(c) and the applicability of these protections.

(c) Any Railroad employee (or their representatives) may notify a Recipient of a dispute or 

controversy relating to the requirements of this Appendix to ensure compliance with 49 U.S.C. § 

22905(c)(2)(B). 

3. Collective Bargaining Agreements. 

(a) Existing Agreements. The rates of pay, rules, working conditions, and all collective 

bargaining and other rights, privileges, and benefits (including continuation of pension rights and 

benefits) of a Railroad’s employees under applicable laws, regulations, and/or existing collective 

bargaining agreements shall be preserved and remain applicable unless changed by future collective 

bargaining agreements or applicable statutes or regulations. As applied to the regulation of 

subcontracting by the Railroads of a Project, the provisions of this section shall mean that a 

determination of whether or not such work validly may be subcontracted by a Railroad shall not be

affected by the fact that the work is being financed by funds subject to the requirements of 49 U.S.C. §

22905(c)(2)(B). Nothing in this Appendix shall be construed as depriving any Railroad employee of 

any rights or benefits or eliminating any obligations that such employee may have under any existing 

contractual or statutory arrangement, including job security agreements, protective conditions, or 

arrangements.

(b) Election by Protected Employee. Where a Protected Employee is eligible for protections 

under both this Appendix and another contractual or statutory arrangement, the Protected Employee 

shall elect between the protection under this Appendix and protection under such other arrangement. 
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After such an election, the Protected Employee shall be protected only by the arrangement that they 

elect. The Protected Employee shall not be entitled to any protection or benefit (regardless of whether 

such benefit is duplicative) under the arrangement that they do not elect. However, if the elected 

protection expires pursuant to the terms of the arrangement that governs the elected protection, the 

Protected Employee is entitled to protection under the arrangement not originally elected for the 

remainder, if any, of the Protective Period. 

4. Change in Operations, Services, Facilities, or Equipment.

(a) Notice. When a Railroad contemplates a change or changes in its operations, services, 

facilities, or equipment as a result of a Project, which may cause the dismissal or displacement of 

Protected Employees or rearrangement of forces involving such employees, it shall give at least sixty 

(60) days’ written notice of such intended changes to both Protected Employees and their duly 

authorized representatives (if applicable). Such notice shall contain a full and adequate description of 

the proposed changes, including an estimate of the number of Protected Employees of each class 

affected by the intended changes. 

(b) Negotiations.

(i) Initiation of Negotiation. Within sixty (60) days after the Railroad issues a 

notice under Section 4(a) of this Appendix, the Railroad or the Protected Employees (or their 

representatives) may, by written notice to the other party, request a meeting and opportunity 

to negotiate an agreement with respect to the application of the terms and conditions of this 

Appendix. These negotiations shall commence within fourteen (14) days from the receipt of 

such request.

(ii) Subject of Negotiations. Each change to rail operations, services, facilities,

infrastructure, or equipment (including rights-of-way, track, and signal and crossing systems) 

that may result in dismissal or displacement of Protected Employees or rearrangement of 

forces involving such employees shall be subject to review and negotiation by the parties, 

but only to the extent necessary to ensure compliance with this Appendix. For any 

contemplated rearrangement of rail forces, the Railroad and the representative(s) of the 

Protected Employees shall agree on the method of selection of employees to be moved, and 

the assignment of those employees to new roles. 
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(c) Arbitration. If the Railroad and the representative(s) of the Protected Employees fail to 

agree within forty-five (45) days from the initial meeting and opportunity to negotiate, either party may 

submit the dispute for arbitration in accordance with the following procedures:

(i) Notice & Selection of Arbitrator. Within ten (10) days after either party 

has notified the other in writing of their desire to submit the dispute for arbitration, the parties 

shall select a neutral arbitrator. If the parties cannot agree upon the selection of said arbitrator, 

then the parties shall submit a request to the National Mediation Board to appoint an 

arbitrator. In either case, a hearing shall be scheduled no later than thirty (30) days after an 

arbitrator has been appointed. 

(ii) Binding Decision. The decision of the arbitrator shall be final, binding, and

conclusive and shall be rendered within thirty (30) days from the date of the commencement 

of the hearing of the dispute. 

(iii) Expenses. The salary and expenses of the arbitrator shall be borne equally

by the parties to the proceeding; all other expenses shall be paid by the party incurring them.

(d) Implementation. If a notice is issued under Section 4(a), the Railroad shall not implement 

such a change or changes until: (i) sixty (60) days after the notice in accordance with Section 4(a), if no 

party requests a meeting and opportunity to negotiate; (ii) the parties reach agreement pursuant to 

Section 4(b), if a party requests a meeting and opportunity to negotiate; or (iii) a referee has rendered a 

decision pursuant to Section 4(c). 

5. Protections for Displaced Employees

(a) Displacement Allowances.

(i) In General. If a Displaced Employee is unable, in the normal exercise of 

such employee’s seniority rights under existing agreements, rules and practices, to obtain a 

position that is compensated equal to or exceeding the compensation the Displaced Employee 

received in the position from which such employee was displaced, then the Displaced 

Employee shall, during the Protective Period, be paid a monthly displacement allowance 

equal to the difference between the monthly compensation received by the Displaced 

Employee in the position in which such employee is retained and the Average Monthly 

Compensation received by the Displaced Employee in the position from which such 

employee was displaced (the “Displacement Allowance”).
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(ii) Application of Displacement Allowance. If a Displaced Employee's 

compensation in that employee’s retained position is less in any month in which such 

employee performs work than the Average Monthly Compensation, then the Displaced 

Employee shall be paid the difference between the current compensation and the Average 

Monthly Compensation. However, the Displacement Allowance shall be reduced by the 

Displaced Employee’s time lost as a result of voluntary absences, to the extent that the 

Displaced Employee is not available for service equivalent to the Displaced Employee’s 

Average Monthly Time. If, on the other hand, the Displaced Employee, in such employee’s 

retained position, works in excess of the Average Monthly Time in any given month, then 

the Displaced Employee shall be additionally compensated for such excess time at the rate 

of pay of the employee’s retained position. If a Displaced Employee fails to exercise their 

seniority rights to secure another position available to the employee which does not require 

a change in such employee’s place of residence, to which the employee is entitled under the 

working agreement, and which carries a rate of pay and compensation exceeding those of the 

position that the employee elects to retain, then the Displaced Employee shall thereafter be 

treated for the purposes of this section as occupying the position such employee elects to 

decline.

(iii) Early Expiration. The Displacement Allowance shall cease prior to the

expiration of the Protective Period in the event of the Displaced Employee's resignation, 

death, retirement, or dismissal for justifiable cause.

(b) Moving Expenses. Any Protected Employee retained in the service of a Railroad, or who 

is later restored to service after being entitled to receive a Dismissal Allowance, and is required to 

change the point of such employee’s employment as a result of the Project, and within the employee’s 

Protective Period is required to move the employee’s place of residence, shall be reimbursed for all 

expenses of moving the employee’s household and other personal effects, including travel expenses, 

temporary living expenses, and any actual wage loss during the time necessary to make the move, and 

for a reasonable time thereafter, not to exceed five (5) days.

(i) Prior Agreement. The exact extent of the responsibility of a Railroad under 

this Section and the ways and means of transportation shall be agreed upon in advance by 

the Railroad and the Protected Employee or their representatives.
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(ii) Exception. Changes in residence that are not a result of a Project, which 

are made after the initial change and that grow out of the normal exercise of seniority rights, 

are not within the purview of this Section. 

(iii) Furloughed Employees. The Railroad shall, to the same extent provided 

above, assume the moving expenses outlined in Section 5(b) for an employee furloughed 

within three (3) years after changing such employee’s point of employment as a result of a 

Project, who elects to move their place of residence back to their original point of 

employment. 

(iv) Reimbursement. A claim for reimbursement shall be paid under the 

provisions of this Section within sixty (60) days after it is submitted, unless disputed by the 

Railroad, but no claim shall be paid if presented to the Railroad more than ninety (90) days 

after the date on which the expenses were incurred.

(c) Losses from Home Sale or Contract Termination. Any Displaced Employee who is 

retained in the service of a Railroad (or who is later restored to service after being entitled to receive a 

dismissal allowance), and who is required to change the point of such employee’s employment during 

the Protective Period as a result of a Project, is entitled to the following:

(i) Home Sale for Less Than Fair Market Value. If the Displaced Employee 

owns their place of residence in the locality from which such employee is required to move, 

then at the Displaced Employee’s option, the Railroad shall reimburse the Displaced 

Employee for the difference between the actual sale price and the fair market value of the 

employee’s place of residence. The Railroad shall pay such difference within sixty (60) days 

after the Displaced Employee has filed a claim for such loss in accordance with Section 

5(c)(vi), unless a controversy arises as to which Section 5(c)(vii) applies. In each case, the 

fair market value of the home in question shall be determined without consideration of the 

Project. The Railroad shall in each instance be afforded an opportunity to purchase the home 

at such fair market value before it is sold by the Displaced Employee to any other person. 

(ii) Election to Receive Closing Costs. The Displaced Employee may elect to 

waive the provisions of Section 5(c)(i) and to receive, in lieu thereof, an amount equal to the 

closing costs that are customarily paid for and assumed by a seller of real estate in the 

jurisdiction in which the employee’s residence is located. Such costs shall include customary 

fees paid to a licensed realtor (not to exceed six percent (6%) of the final sale price) and any 

prepayment penalty required by any mortgagor or beneficiary of a deed of trust. Such costs 
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shall not include the payment of any mortgage discount points or similar interest discount 

fees by the Displaced Employee. 

(iii) Pending Contract to Purchase. If a Displaced Employee has entered into a 

contract to purchase a place of residence, but due to a Project must cancel that contract, the 

Railroad shall indemnify the Displaced Employee against any losses due to such cancellation, 

and shall relieve the Displaced Employee from any further obligation under the contract. 

(iv) Unexpired Lease. If the Displaced Employee holds an unexpired lease of a 

dwelling as the employee’s primary place of residence, and the Displaced Employee must 

cancel the lease due to a Project, the Railroad shall indemnify the Displaced Employee from 

all costs and liability arising from said cancellation. 

(v) Exclusions. Any change in residence that is not due to or caused by a

Project, or that resulted from the normal exercise of a Protected Employee’s seniority rights, 

shall not be within the purview of this Section. 

(vi) Notification of Claims. A Displaced Employee shall notify, in writing, the 

Railroad of such employee’s claim arising from this Section 5(c) within one (1) year of the 

date the Displaced Employee’s claim accrues.

(vii) Home Value Disagreements. In the event of disagreement between a

Railroad and a Displaced Employee as to the value of a Displaced Employee’s claim, either 

party (or their representatives) may request, in writing, a joint conference to resolve the 

disagreement.

A. Real Estate Appraisers. If the parties are unable to resolve the disagreement, either 

party may refer the disagreement to two licensed real estate appraisers, one of 

whom shall be selected by the Displaced Employee (or such employee’s 

representatives), and one of whom shall be selected by the Railroad. If the two 

selected real estate appraisers are unable to agree on a valuation within thirty (30) 

days, the selected real estate appraisers shall designate (or agree to a method by 

which to select) a third licensed real estate appraiser within ten (10) days. If unable 

to agree on a selection, either party may request the National Mediation Board to 

designate within twenty (20) days a third licensed real estate appraiser. A decision 

by two of the three licensed real estate appraisers shall be required to determine 

the value in dispute. Said decision shall be final and conclusive.

B. Payment of Expenses. The salary and expenses of the third or neutral appraiser 

shall be borne equally by the parties to the proceedings. All other expenses shall 
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be paid by the party incurring them, including the compensation of the appraiser 

selected by such party. 

(d) Failure to Exercise Seniority Rights. If a Displaced Employee is able but does not 

exercise such employee’s seniority rights to secure another position that does not require a change in 

the employee’s primary place of residence, the Displaced Employee shall not be entitled to moving 

expenses or protections due to the sale of a home outlined in Sections 5(b)&(c).

6. Protections for Dismissed Employees. 

(a) Dismissal Allowance. A Dismissed Employee shall be paid a monthly dismissal allowance 

from the date they are deprived of employment through the Protective Period. 

(i) Monthly Dismissal Allowance Calculation. The monthly dismissal 

allowance shall be equivalent to the Average Monthly Compensation received by the 

Dismissed Employee in the last twelve (12) months of employment prior to the employee’s 

dismissal.

(ii) Submission of Claim. A claim for the initial month of a dismissal 

allowance shall be paid within ninety (90) days and a claim for a subsequent month shall be 

paid within sixty (60) days after the claim is filed by the Dismissed Employee, unless the 

claim is disputed by the Railroad pursuant to Section 8 of this Appendix. 

(iii) Reduction or Suspension of Dismissal Allowance. If a Dismissed 

Employee accepts new employment (or reemployment by the dismissing Railroad) during 

the Protective Period, the dismissal allowance shall be reduced such that the accepted 

monthly compensation at the then-current position (including any unemployment insurance 

compensation received) plus the dismissal allowance is equivalent to the Dismissed 

Employee’s Average Monthly Compensation. If the compensation of the Dismissed 

Employee’s then-current employment is greater than the dismissal allowance, the dismissal 

allowance shall be suspended. Such reduction or suspension shall continue for the duration 

of the Protective Period, unless and until the Dismissed Employee’s then-current 

compensation is reduced or eliminated. Prior to dismissal, such Dismissed Employee (or their 

representative) and the dismissing Railroad shall agree upon a procedure by which such 

Railroad shall be informed of the earnings and benefits of such Dismissed Employee in their 

new position of employment. 
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(iv) Early Termination. The dismissal allowance shall cease prior to the

expiration of the Protective Period in the event of the Dismissed Employee's resignation, 

death, retirement, dismissal for justifiable cause under existing agreements, failure without 

good cause to return to service after being notified in accordance with an applicable working 

agreement, or failure without good cause to accept a comparable position that does not 

require a change of residence, for which the Dismissed Employee is qualified and eligible 

with the Railroad from which such employee was dismissed after being notified, if the 

employee’s return does not infringe upon employment rights of other employees under a 

working agreement. 

(b) Separation Allowance. A Dismissed Employee may, at such employee’s option, within 

seven (7) days of dismissal or an arbitration award establishing the employee’s status as a Dismissed 

Employee, resign and (in lieu of all other benefits and protections provided in this Appendix) accept a 

lump sum payment computed in accordance with Section 9 of the Washington Job Protection Agreement 

of May 1936, as amended.

(c) Priority of Employment or Re-Employment. Any Protected Employee whose

employment is terminated or who is furloughed as a result of a Project shall, if they so request, be 

granted priority of employment or re-employment to fill a position comparable to that which they held

on the Railroad (even if in a different craft or class), so long as they are qualified, or by training or 

retraining can become physically and mentally qualified, for the position. However, such priority of 

employment or re-employment must not be in contravention of any relevant collective bargaining 

agreements.

(i) Training or Re-Training. In the event such training or retraining is 

requested by a Protected Employee pursuant to Section 6(c), the Railroad shall provide such 

training or retraining at no cost to the Protected Employee. 

(ii) Waiver of Protections. If a Protected Employee who has made a request 

under Section 6(c) fails without good cause within ten (10) days to accept an offer of a 

comparable position for which such employee has satisfactorily completed such training, the 

Protected Employee shall, upon the expiration of such ten (10) day period, forfeit all rights 

and benefits under this Appendix. 
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7. Fringe Benefits. No Protected Employee shall be deprived during the Protective Period of 

any (non-salary) rights, privileges, or benefits attached to such employee’s previous employment under 

the terms and conditions of an existing employment agreement (including, but not limited to, free 

transportation, hospitalization, pensions, insurance, or vacation benefits), so long as such rights, 

privileges, or benefits continue to be accorded to other employees of the Railroad, in active service or on 

furlough as the case may be, to the extent that such rights, privileges, or benefits can be so maintained 

under present authority of law, corporate action, or through future authorization. 

8. Arbitration of Disputes.

(a) Scope. Any dispute under these conditions not settled by the relevant parties will be 

resolved in arbitration as provided herein. In the event a Railroad and the Protected Employee(s) (or 

their representatives) cannot settle a dispute or controversy with respect to the interpretation, 

application, or enforcement of any provision of this Appendix (other than those Sections of this 

Appendix that provide for another means of dispute resolution) within thirty (30) days after the dispute 

arises, either party may refer the dispute to an arbitration committee. The affected Protected 

Employee(s) (or their representatives) may notify a Recipient of a dispute or controversy under this 

Section 8 to ensure compliance with 49 U.S.C. § 22905(c)(2)(B). 

(b) Notice. The party referring the dispute to an arbitration committee shall notify the other 

party in writing of its intent to refer a dispute or controversy to an arbitration committee.

(c) Selection of Members. Within ten (10) days of receipt of the written notice, each party 

to the arbitration shall select one (1) member of the committee, and the members thus chosen shall select 

an additional, neutral member to serve as chairman. If any party fails to select its member of the 

arbitration committee within the prescribed time limit, the general chairman of the involved labor 

organization or a senior officer designated by the Railroad or the Recipient, as the case may be, shall be 

deemed the selected member. Should the members be unable to agree upon the appointment of the 

neutral member within ten (10) days, the parties shall then within an additional ten (10) days agree to a 

method by which a neutral member shall be appointed; failing such agreement, either party may request 

the National Mediation Board to designate within twenty (20) days the neutral member whose

designation will be binding upon the parties.

(d) Multiple Representatives. In the event a dispute involves more than one labor 

organization, each will be entitled to a representative on the arbitration committee, in which event the 

Railroad or Recipient may appoint additional representatives equivalent to the number of labor 
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organization representatives; provided, however, that the decision in such case shall be made by the 

neutral member. 

(e) Decisions Binding. The decision, by majority vote except as provided otherwise in 

paragraph (d) of this Section, of the arbitration committee shall be final, binding, conclusive, and 

rendered within forty-five (45) days after the hearing of the dispute or controversy has been concluded 

and the record closed.

(f) Expenses. The salaries and expenses of the neutral member shall be borne equally by the 

parties to the proceeding, and all other expenses shall be paid by the party incurring them. 

9. Classification of a Protected Employee. In the event an employee (or their representatives) 

cannot settle a dispute or controversy with the Railroad or the Recipient as to whether or not a particular 

employee would be affected by a Project, either party may refer the dispute to an arbitration committee 

within thirty (30) days after the dispute arises pursuant to the arbitration procedures in Section 8. For 

any such dispute, the employee of a Railroad shall have the burden to identify, with reasonable 

specificity, the Project that allegedly affected them, and to specify the pertinent facts of that Project, 

including the change or changes resulting from the Project that allegedly affected them. The burden 

shall then shift to the Railroad or Recipient to show that factors other than a change resulting from the 

Project affected the employee. The employee shall prevail on this issue if it is established that the Project 

had an effect upon the employee, even if other factors also may have affected the employee.

10. Resolution of Disputes for Non-Bargaining Unit Protected Employees. Any Protected 

Employee who is not represented by a labor organization shall be afforded substantially the same levels 

of protection as are afforded to members of labor organizations under this Appendix. In the event any 

dispute arises between a Railroad and an employee not represented by a labor organization with respect to 

the interpretation, application, or enforcement of any provision of this Appendix that cannot be settled by 

the parties within thirty (30) days after the dispute arises, either party may, as an alternative to the dispute 

resolution procedures outlined in this Appendix, refer the dispute within ninety (90) days after the dispute 
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arises to the Secretary of Labor for determination. The determination of the Secretary of Labor, or their 

designated representative, shall be final and binding on the parties.

11. Severability. In the event any provision of this Appendix is held to be invalid or otherwise 

unenforceable under applicable law, the remaining provisions of this Appendix shall not be affected. 

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